The Armed Forces Pension Regulations 2014
| Jurisdiction | UK Non-devolved |
| Citation | SI 2014/2336 |
| Year | 2014 |
2014No. 2336
PUBLIC SERVICE PENSIONS
The Armed Forces Pension Regulations 2014
31stAugust2014
4thSeptember2014
1stApril2015
The Secretary of State for Defence makes these Regulations in exercise of the powers conferred by sections 1(1), (2)(h), (3) and (4), 2, 3(1),(2),(3)(a) and (c) and (4), 4(1) to (3) and (5), 5(1) to (6) and (8), 7(1), (2)(a) and (3) to (6), 8(1)(a), (2)(a) and (4), 11(1) and (2), 12(1) to (3), (6) and (7), 13(1) to (3), 14, 18(1), (2), (4)(b) and (5) to (9), 25, paragraph (c) of the definition of "employer" in section 37, paragraph 1 of Schedules 1 and 2, Schedule 3, paragraph 1 of Schedules 5 and 6, and paragraphs 1(2) and 2(2) of Schedule 7 to the Public Service Pensions Act 2013( 1). In accordance with section 21 of that Act, the Secretary of State for Defence has consulted the representatives of such persons as appear to the Secretary of State likely to be affected by these Regulations.
In accordance with section 3(5) of that Act, these Regulations are made with the consent of the Treasury.
PART 1
Preliminary
Citation and commencement
1. (1) These Regulations may be cited as the Armed Forces Pension Regulations 2014.
(2) They come into force on 1st April 2015.
Establishment of scheme
2. These Regulations establish a scheme for the payment of pensions and other benefits in respect of a person's service in the armed forces.
Interpretation
3. (1) In these Regulations, unless the context otherwise requires,-
"the Act" means the Public Service Pensions Act 2013;
"EDP 2014" means the Armed Forces Early Departure Payment Scheme Regulations 2014( 2);
"FA 2004" means the Finance Act 2004( 3);
"PIA 1971" means the Pensions (Increase) Act 1971( 4);
"PSA 1993" means the Pension Schemes Act 1993( 5);
"WRPA 1999" means the Welfare Reform and Pension Act 1999( 6);
"accrual rate", in relation to a member's pensionable earnings, means 1/47th;
"accrued added pension" means-
(a) accrued added pension (member), or(b) accrued added pension (member and dependants);"accrued added pension (member)" has the meaning given in regulation 25 (calculation of amount of accrued pension for the purposes of Parts 4 and 5);
"accrued added pension (member and dependants)" has the meaning given in regulation 25 (calculation of amount of accrued pension for the purposes of Parts 4 and 5);
"accrued club transfer earned pension" has the meaning given in regulation 25 (calculation of amount of accrued pension for the purposes of Parts 4 and 5);
"accrued earned pension" has the meaning given in regulation 25 (calculation of amount of accrued pension for the purposes of Parts 4 and 5);
"accrued pension" has the meaning given in regulation 25 (calculation of amount of accrued pension for the purposes of Parts 4 and 5);
"active member" has the meaning given in section 124(1) of the Pensions Act 1995 and refers to membership of this scheme( 7);
"active member's account" has the meaning given in regulation 29 (establishment of an active member's account);
"actuarial" means determined by the scheme manager after consultation with the scheme actuary;
"added pension (member and dependants)", in relation to a scheme year, means an amount calculated in accordance with regulation 32 (account to specify amount of pension for a scheme year);
"added pension" means-
(a) added pension (member and dependants); and(b) added pension (member);"added pension (member)", in relation to a scheme year, means an amount calculated in accordance with regulation 32 (account to specify amount of pension for a scheme year);
"additional paternity leave" means leave which, in the opinion of the Secretary of State, corresponds to additional paternity leave within the meaning given in regulation 2(1) of the Additional Paternity Leave Regulations 2010( 8);
"allocation amount" in relation to a pension means the amount of the pension allocated as a result of the exercise of an allocation election;
"allocation election" means an election under regulation 61 (election to allocate pension);
"amount of credited pension" has the meaning given in regulation 41 (establishment of a pension credit member's account);
"assumed pay" has the meaning given in regulation 24 (meaning of assumed pay);
"beginning date" means the date of which the pension is treated as beginning for the purpose of section 8(2) or 8(2A) of the PIA 1971;
"cash transfer sum" has the meaning given in section 101AB of the PSA 1993;
"club scheme" means a registered occupational pension scheme that has agreed to make and receive club transfer value payments under the club transfer arrangements;
"club transfer" means a transfer to or from this scheme under the club transfer arrangements;
"club transfer arrangements" means arrangements approved by the scheme manager as providing reciprocal arrangements between this scheme, any connected scheme and other registered occupational pension schemes for making and receiving club transfer value payments;
"club transfer earned pension" means pension attributable to receipt of a club transfer value payment;
"club transfer value payment" means payment of a club transfer value;
"club transfer value", in relation to an amount of accrued earned pension under this scheme or under another club scheme, means an amount calculated by the scheme manager-
(a) in accordance with the club transfer arrangements; and(b) by reference to the guidance and tables provided by the Government Actuary for this purpose that are in use on the date used for the calculation;"connected scheme" means another statutory pension scheme that is connected with this scheme within the meaning of section 4(6) of the Act;
"commanding officer" is to be read in accordance with section 360 of the Armed Forces Act 2006( 9);
"commutation amount" in relation to a pension means the amount of the pension exchanged for a lump sum as a result of the exercise of the option under regulation 59 (general option to exchange part of pension for lump sum) to commute an amount of pension to a lump sum;
"continuous period of pensionable service" has the meaning given in regulation 21 ("pensionable service");
"deferred added pension" means-
(a) deferred added pension (member), or(b) deferred added pension (member and dependants);"deferred added pension (member)" means an amount calculated in accordance with regulation 35 (account to specify provisional amount of deferred pension);
"deferred added pension (member and dependants)" means an amount calculated in accordance with regulation 35 (account to specify provisional amount of deferred pension);
"deferred club transfer earned pension" means an amount calculated in accordance with regulation 35 (account to specify provisional amount of deferred pension);
"deferred earned pension" means an amount calculated in accordance with regulation 35 (account to specify provisional amount of deferred pension);
"deferred member" has the meaning given in section 124(1) of the Pensions Act 1995( 10) and refers to membership of this scheme;
"deferred member's account" has the meaning given in regulation 34 (establishment of a deferred member's account);
"deferred pension age" in relation to this scheme is determined in accordance with section 10 of the Act;
"dual capacity member" means a member who falls within regulation 14 (dual capacity membership);
"early payment reduction" means the actuarial reduction that is applied when calculating the annual rate of pension payable to a member of this scheme who has not reached their normal pension age and applies to receive their pension before their deferred pension age;
"earned pension" means the amount of earned pension calculated in accordance with regulation 32 (account to specify amount of pension for a scheme year) by applying the accrual rate to the member's pensionable earnings for that year;
"earnings adjustments in determining final pensionable earnings" has the meaning given in regulation 77 (earnings adjustments in determining final pensionable earnings);
"eligible child" has the meaning given in regulation 73 (meaning of "eligible child");
"employment" includes an office or appointment, and related expressions are to be read accordingly;
"final pensionable earnings" has the meaning given in regulation 76 (meaning of "final pensionable earnings');
"full protection" in relation to a person, means a person who remains an active member of a connected scheme by virtue of provisions being made under section 18(5) of the Act;
"guarantee date" has the meaning given in regulation 98 (Interpretation);
"guaranteed minimum" means the guaranteed minimum as defined in sections 14 and 17 of the PSA 1993 (minimum pension for earners, widows and widowers)-
(a) as increased in accordance with the requirements of section 109 of that Act (annual increase of minimum pensions); and(b) if a reduction has been made under section 15A of that Act (reduction of guaranteed minimum in consequence of pension debit), as reduced in accordance with that section;"ill-health pension" means an ill health pension payable under regulation 51, 52 or 56 (entitlement to ill-health pension: active member with permanent serious ill-health, entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment and entitlement to ill-health pension: deferred member with permanent serious ill-health);
"index adjustment", in relation to an opening balance, means-
(a) for any scheme year (other than the opening balance of club transfer earned pension) the percentage increase or decrease for prices or earnings as the scheme manager, after consulting the scheme actuary, may determine to be applicable for any description of pension specified in a Treasury order under section 9(2) of the Act in relation to the previous scheme year; and(b) in relation to the opening balance of club transfer earned pension for any scheme year, means the adjustment that would apply to the opening balance of that amount of...To continue reading
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